Hotel Gift card market is Segmented by Product Type such as Universal Accepted Open Loop, Hotel Closed Loop, Miscellaneous Closed Loop, and E-Gifting
Industry: Consumer Goods
Published Date: February-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 300
Report ID: PMRREP31497
According to a new study by Persistence Market Research, the global hotel gift card market generated a revenue of US$ 53,269.8 million in 2022. Worldwide demand for hotel gift card market is set to accelerate at 14.3% CAGR and top a market valuation of US$ 228,120.5 million by 2033.
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Hotel Gift Card Market Size (2022A) |
US$ 53,269.8 million |
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Estimated Market Size (2023E) |
US$ 60,514.76 million |
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Projected Market Value (2033F) |
US$ 228,120.5 million |
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Value CAGR (2023–2033) |
14.3% |
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Collective Value Share: Top 3 Countries (2022) |
~35% |
A hotel gift card is a prepaid card with a pre-loaded monetary value that can only be used at hotels and businesses connected to them. Gift cards for hotels are popular since they may be used for dining, spa treatments, and other hotel-related activities. They are useful to the recipient. Hotels frequently give gift cards, which come in both physical and digital forms and are issued by banks or gift card issuers.
There are two varieties of hotel gift cards: closed loop and open loop. Unlike closed loop hotel gift cards, which can only be used at a certain hotel, open loop hotel gift cards can be used at any hotel that accepts card payments. Hotel gift cards can be used for a variety of things, including hotel stays (accommodation costs), vacation packages, bar and spa services, meetings and events, sports activities, travel and transportation, and more.
During the forecast period, the global hotel gift card industry is anticipated to have considerable revenue growth. This expansion is anticipated to be fueled by a rise in the popularity of leisure activities among young people as well as an increase in the use of virtual gift cards among millennials and working professionals, who prefer options that can be found instantly and in one place.
The gifting culture and habits of millennials are also driven by their opulent and evolving lifestyles, who use gift cards as tokens of their affection and worldwide demand for hotel gift card market increased at a consistent CAGR of 11.7% from 2018 to 2022.
Compared to e-Commerce, m-commerce is expanding faster. Because it's handy, more and more individuals are making purchases on their mobile devices. As a result, more businesses are emphasizing the creation of applications and the distribution of hotel gift cards via them.
The majority of companies that sell hotel gift cards are advertising their new gift cards on social media websites and apps. The most effective technique to get customers' attention in the marketplace is through social media strategy. Companies are able to deliver the appropriate brand-related content via the appropriate channel. With the aid of social media advertising, e-Gifting has seen a considerable increase, which motivates businesses to make the most of social media as a promotional tool. Over the forecast period 2023–2033, the hotel gift card market is anticipated to expand at a CAGR of 14.3% in terms of value.
The sales of hotel gift cards are being greatly impacted by the rising number of hotel reservations made by millionaires. Compared to other groups, millionaires are more likely to buy a hotel gift card, whether it is open or closed loop.
Additionally, a growing number of working millionaires are displaying an increased interest in staying at hotels and using E-gift cards, which is anticipated to increase the market for hotel gift cards throughout the projected period.
Growing environmental awareness among millionaires had prompted gift card manufacturers to create environmentally friendly and degradable cards. Physical gift cards consisting of recycled PVC, wood, and other biodegradable materials are thus currently fashionable. Customers are drawn to these environmentally friendly gift cards, which is boosting the market for hotel gift cards.
In hotels, social media is an effective marketing tool in order to draw in Millennials.
In fact, millennials consume more information than any other generation and actively seek out second perspectives or sources of influence. They should have a presence on platforms like Instagram, Facebook, and YouTube. The gifting culture and habits of millennials are also driven by their luxury and evolving lifestyles, which makes gift cards a popular option.
In recent years, personalized gifting has become increasingly popular, particularly on internet shopping portals. People are enthusiastic about putting notes to gifts intended for their loved ones and using personalized gifts to express their thoughts and feelings.
In fact, over the past three years, the number of consumers shopping for uniquely designed gifts with bespoke messages has nearly tripled. In the upcoming years, it is projected that this aspect would help drive the market for hotel gift cards.
E-gift cards are quickly replacing conventional gift cards in hotels' gift card offerings. This enables them to better serve their clients' needs for gift cards and to offer creative promotions in conjunction with those gift cards. Additionally, offering digital gift cards in collaboration with e-Commerce businesses enables hotels to offer gift cards globally, which sharply boosts gift card sales.
For instance, The Oberoi Group concentrates on selling its gift cards via independent e-Commerce vendors like Amazon.com, Inc. Through this tactic, the corporation makes more of its gift cards available and boosts the amount of income it generates.
How is India's Gift Card Market Expanding Due To the Country's Rapid E-Commerce Expansion?
The substantial growth of the e-commerce sector is one of the key drivers propelling the gift card market in India. On the back of the protracted lockdown restriction and expanding internet and smartphone penetration rate in the nation, the number of customers who switched to online shopping climbed dramatically over the last four to eight quarters.
The younger generation of consumers in India will be a major force in the online retail business because they prefer to shop using their mobile devices first. Notably, over the next four to eight quarters, this expansion of the e-commerce sector will promote the expansion of digital gift cards as well as the country's entire gift card market.
How will Technological Advancement and B2B Improve Sales in the US?
Technological advancement due to various research and development initiatives, the presence of tech giants, commercial mergers and partnerships influence the global gift card market in the US. Business-to-business uses for gift cards are fast growing and are recent trends. They are now being widely used for employee reward programs, sometimes in a barter/swap mode between companies. This is especially valued by retailers who note that these type gift card programs bring a much higher percentage of entirely new customers to their stores.
Some retailers consider this advertising value to be so significant that they are willing to sell or swap gift cards for business-to-business programs at less than face value.
How Corporate Spending Is Influencing the China Hotel Gift Card Market?
In the years to come, rising corporate gift card spending will continue to support the market's expansion. Additionally, the practice of purchasing bitcoins and other cryptocurrencies with gift cards is fueling the industry's expansion.
For instance, Alibaba.com and SeaGM are two popular websites that sell gift cards on behalf of third parties. Additionally, customers can buy shares of Alibaba.com that can be distributed to others as gift cards.
Which Product Type Commands A Larger Share In The Market?
E-gift cards function similarly to conventional physical gift cards, except they do not come with a physical card. The card is purchased online by the giver, who then funds it. The e-gift card is subsequently sent to the recipient through email. The card is claimed and activated by the recipient. The money on the e-gift card can then be used to make purchases while they are online.
Which Type of Application Has Larger Share In the Market?
Over the upcoming years, stays application type category is predicted to experience the greatest market growth of around 17.4% during the forecast period. The major guiding principle in selecting a hotel is stays. In comparison to other amenities, the client prefers different options from hotels for lodging. Consequently, the demand for hotel gift cards in this sector is increased globally.
As the need for hotel gift cards grows due to an increase in the number of foreign travelers and the influx of customers into hotels, numerous market players are rapidly expanding their market share. Along with focusing on customer retention techniques, frequent product launches, different vacation packages, growing their clientele, and merger and acquisition tactics, a number of the top hotel businesses are also investing in online platforms.
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Details |
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Forecast Period |
2023–2033 |
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Historical Data Available for |
2018–2022 |
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Market Analysis |
US$ million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon Request |
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The global hotel gift cards market was valued at US$ 53,269.8 million as of 2022.
Demand for hotel gift cards market is projected to increase at 14.3% CAGR and be valued at US$ 228,120.5 million by 2033 end.
Amazon.com Inc., Blackhawk Network Holdings, Inc., MakeMyTrip Limited, Avani Hotels & Resorts Limited, Anantara Hotels, Resorts & Spas, Travelgift.cards, Toga Far East Hotels, Accor, Expedia Group, Arp-Hansen Hotel Group, Valencia Hotel Group, Taj Hotels, and Qwikcilver Solutions Pvt. Ltd. Among others are the key market players.
